Stock Pickers Regain Favor at Australian Pension on Index Risks

Australian Retirement Trust, the nation’s no. 2 pension fund, is switching more money from passive index funds to active equity managers, citing the growing dominance of major technology companies in global benchmarks.

The A$330 billion ($218 billion) fund plans to gradually wind back its roughly 70% weighting in passive funds and return closer to the even split it’s traditionally targeted, according to Andrew Fisher, head of investment strategy for ART. He expects active managers to respond more nimbly — identifying winners and avoiding losers — if the current concentration in US tech eases.